EVALUATING THE PERCEIVED RISKS OF AI IN SOUTH AFRICAN FINANCIAL INSTITUTIONS: A MULTIDIMENSIONAL APPROACH

Merylin Mabingwe-Mashashave; Mariette Geyser

doi:10.63356/ace.2025.010

Authors

Merylin Mabingwe-Mashashave School of Economic Sciences, Faculty of Economic and Management Sciences, North-West University, South Africa https://orcid.org/0000-0001-7582-909X
Mariette Geyser School of Economic Sciences, Faculty of Economic and Management Sciences, North-West University, South Africa https://orcid.org/0000-0002-1306-0198

DOI:

https://doi.org/10.63356/ace.2025.010

Keywords:

artificial intelligence, financial institutions, risk perception, AI governance, organisational risk, South Africa

Abstract

Risk management procedures in financial institutions around the world have been significantly altered by artificial intelligence (AI). However, little is known about the perceived risks of implementing AI, especially in developing nations such as South Africa. The aim of this study is to assess, from a multidimensional perspective, the perceived risks of AI adoption by employees in South African financial institutions. This study employs a mixed-methods approach, using a purposive and snowball sample of 90 survey respondents and semi-structured interviewees from several South African financial institutions. The study revealed a broad spectrum of concerns ranging from AI-induced unemployment to cybercrime vulnerabilities. The analysis provides layered insights into how different departments, including Risk Management, IT, and Operations Management, uniquely perceive and manage AI-related challenges. This study underscores the need for personalised risk management strategies that meet unique departmental concerns, as well as the importance of strategic planning in the integration of AI technology by financial institutions to maximise potential while limiting associated risks. It adds to the growing body of knowledge on AI adoption in emerging markets by providing practical information to practitioners and policymakers.

Author Biography

Mariette Geyser, School of Economic Sciences, Faculty of Economic and Management Sciences, North-West University, South Africa

Dr. Judith Mariëtte Geyser, a respected academic in agricultural economics, has been a Senior Lecturer at North-West University, Potchefstroom Campus, since August 2019. She holds a Doctorate in Financial Management from the University of Pretoria, achieved in 2002. Her professional journey includes significant roles such as the Chair of the Nedbank Chair in Commodity Finance and Risk at the University of Pretoria, a Market Researcher at the ARC Institute for Soil, Climate and Water, and an Insolvency Practitioner at Fort Trustees in Pretoria. I am a farmer and the owner of a well-known Dormer sheep stud, recognized for its superior genetics and breeding standards

She has a profound commitment to improving education and training in agricultural finance and management, evidenced by her leadership in developing and restructuring numerous academic programs and modules. She is recognized for her contributions to textbooks in her field, including "Finance and Farmers: A Financial Management Guide for Farmers" and "Short and Long of Futures Markets: SAFEX, Grain Hedging, and Speculation," which is prescribed by several universities. Her research, which includes a wide range of topics from farm risk management, agricultural derivatives, to sustainable farming practices, is widely published in accredited journals.

Dr. Geyser’s dedication to her field is further illustrated by her role in guiding numerous Masters and Doctoral candidates to completion, alongside her practical applications in statutory evaluations and professional training programs.

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